Question: could you finish the problem for me? Problem 6-32 Gerald/Brooke, Ltd. manufactures shirts, which it sells to customers for embroidering with various slogans and emblems.

could you finish the problem for me?

Problem 6-32 Gerald/Brooke, Ltd. manufactures shirts, which it sells to customers for embroidering with various slogans and emblems. The standard cost card for the shirts is as follows.
Standard Price Standard Quantity Standard Cost
Direct materials $1.6 per yard 1.25 yards $2
Direct labor $12 per DLH 0.25 DLH 3
Variable overhead $4 per DLH 0.25 DLH 1
Fixed overhead $6 per DLH 0.25 DLH 1.5
$7.50
Bobby Brickley, operations manager, was reviewing the results for November when he became upset by the unfavorable variances he was seeing. In an attempt to understand what had happened, Bobby asked CFO Lila Davis for more information. She provided the following overhead budgets, along with the actual results for November. The company purchased and used 118,600 yards of fabric during the month. Fabric purchases during the month were made at $1.45 per yard. The direct labor payroll ran $254,100, with an actual hourly rate of $12.1 per direct labor hour. The annual budgets were based on the production of 1,002,440 shirts, using 253,800 direct labor hours. Though the budget for November was based on 83,300 shirts, the company actually produced 84,000 shirts during the month.
Variable Overhead Budget
Annual Budget Per Shirt NovemberActual
Indirect material $452,200 $0.45 $39,400
Indirect labor 302,400 0.3 34,340
Equipment repair 204,500 0.2 17,600
Equipment power 54,800 0.05 15,000
Total $1,013,900 $1.00 $106,340
Fixed Overhead Budget
Annual Budget NovemberActual
Supervisory salaries $264,400 $24,900
Insurance 353,400 35,000
Property taxes 84,400 8,300
Depreciation 322,500 34,400
Utilities 214,600 24,600
Quality inspection 281,900 32,100
Total $1,521,200 $159,300
(a) Calculate the direct materials price and quantity variances for November. (If variance is zero, select "Not Applicable" and enter 0 for the amounts.)
Direct material price variance $ 17790 FavorableUnfavorableNot Applicable513628500_0_569041246771031_dropdown_184_resp_1
Direct material quantity variance $ 21760 FavorableUnfavorableNot Applicable513628500_0_569041246771031_dropdown_189_resp_1
(b) Calculate the direct labor rate and efficiency variances for November. (Round answers to 0 decimal places, e.g. 125. If variance is zero, select "Not Applicable" and enter 0 for the amounts.)
Direct labor rate variance $ Not ApplicableUnfavorableFavorable
Direct labor efficiency variance $ Not ApplicableUnfavorableFavorable
(c) Calculate the variable overhead spending and efficiency variances for November. (Round answers to 0 decimal places, e.g. 125. If variance is zero, select "Not Applicable" and enter 0 for the amounts.)
Variable overhead spending variance $ FavorableNot ApplicableUnfavorable
Variable overhead efficiency variance $ UnfavourableNot ApplicableFavourable
(d) Calculate the fixed overhead spending variance for November. (Round answer to 0 decimal places, e.g. 125. If variance is zero, select "Not Applicable" and enter 0 for the amounts.)
Fixed overhead spending variance $

UnfavorableFavorableNot Applicable

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!